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Zorluk: ZorAllocation and Apportionment of Expenses among Departments

A trading firm operates three departments: X, Y, and Z. During the financial year, total Rent and Rates paid amounted to ₦120,000₦120,000, which includes a prepayment of ₦20,000₦20,000 for the subsequent accounting period. The floor areas occupied by the departments are 1,200 sq. meters1,200\text{ sq. meters} for Department X, 800 sq. meters800\text{ sq. meters} for Department Y, and 500 sq. meters500\text{ sq. meters} for Department Z. What is the correct amount of Rent and Rates to be charged to Department Y in the departmental profit and loss account?

  1. ₦32,000Cevap
  2. B
    ₦38,400
  3. C
    ₦44,800
  4. D
    ₦48,000

Cevap

The amount of Rent and Rates to be charged to Department Y is ₦32,000.
The correct charge is ₦32,000. Rent and rates expense must be adjusted by subtracting the prepaid amount of ₦20,000 from the total cash paid of ₦120,000 to arrive at the actual current period expense of ₦100,000. Rent is equitable apportioned on the basis of floor area occupied; Department Y occupies 800 sq. meters out of a total 2,500 sq. meters (800/2,500 = 32%), yielding ₦32,000.

Adım Adım Çözüm

1
Adjust total Rent and Rates for prepayment
Net Rent and Rates expense = ₦120,000−₦20,000=₦100,000₦120,000 - ₦20,000 = ₦100,000
Prepayments represent expenses paid for a future period and must be deducted to obtain the net expense for the current year.
2
Determine total floor area
Total floor area = 1,200+800+500=2,500 sq. meters1,200 + 800 + 500 = 2,500\text{ sq. meters}
Rent and Rates are equitable overheads best apportioned using the relative floor space occupied by each department.
3
Calculate Department Y's portion
Department Y share = 8002,500×₦100,000=₦32,000\frac{800}{2,500} \times ₦100,000 = ₦32,000
Multiplying the net current expense by Department Y's fraction of the total floor space gives its apportioned charge.

Anahtar Kavram

Apportionment of departmental expenses based on floor area after adjusting for prepaid expenses.
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Konular

Allocation and Apportionment of Expenses among Departments

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